Cisco Systems, Inc. Shares Continue To Lag The Market

Cisco Systems, Inc. (NASDAQ: CSCO) shares have shown little will or ability to participate in the market's recent rally phase. That lag may continue a bit longer before the bulls can hope for some positive results.Cisco Systems shareholders are hoping that the current downside action is merely a correction in a long-term bull market for the stock. As long as the long-term uptrend line holds up as support in the low $23s, they have a chance of that hoped-for scenario coming to fruition.

What The Bulls See

A great value based on the price-to-book and price-to-sales of 2.26 and 2.72, respectively, not to mention the price-to-earnings ratio of just over 10.Strong profit margins, strong cash flows and very strong balance sheet.

What The Bears See

• A bearish "abc" downside correction pattern in progress on the price chart. The downside projection for the pattern comes in at $23.61.
• A company with relatively low revenue and earnings growth estimates for the foreseeable future, which make their P/E of 10 not quite as "cheap."

Technical Take

Technical analysts,Cisco note that the stock is likely that the pattern "abc" on the other side,the pivot bearing to 23.25-range $ 23.61 USD (depending on use of abc to take pattern) to meet.The range of support also corresponds approximately to the uptrend line for Cisco long term.

Technical would be good risk/reward game lawyer longest match in Cisco shares if withdrawals of shares expected to support $ 23.61. Before that, opportunities and relationships are simply not conducive to long positions. Meanwhile, the Bears can keep a few percentage points,but when burned extend their welcome as soon as the stock approaches support.